Posted 5 years ago on Dec. 2, 2011, 5:30 p.m. EST by Recycleman
(102)
This content is user submitted and not an official statement

It has become an on-line casino.
Modern financial enterprises evolutional change’s of generational based investment plans evolve with need for new ways of charging fees.

These fees are the same as a bookie. They offset bets and make between 10 to 20 percent on the bets. If the betting gets to heavy in one direction they give a point spread to get equal betting. The profits come from the fees charged to the winner.

Stock Market sells bets in a similar fashion except they have multiple levels to bet on the same outcome.
The ways they change the system and why.

They charge fees to place the bets and control the direction with a process called vix replacing the points system. This keeps betting level.

Corrections in the market. This is where they control the price of stocks to keep them in play. If stock prices rise uncontrolled then the amount of sells would drop. Stock owners would not sell and repurchase the stocks reducing the number of trades and fees charged. High price also reduces the number of stock sold.

Propaganda. The information repeated on the major stock investment channels too direct needed bets. Example. Apple reports the largest one quarters profit’s in the company’s history. The stock is already at the projected high value. So they also announce that expected sales for the next quarter will decline and profits will drop. This results in selling of a stock that is rising. The result causing a downturn and sell of stocks.

After the initial stock offering the only product the Exchange sells are the bets or stocks. In the past our grandparents would buy a stock and keep it for years. One fee charged. With the record profits and bonuses being paid the old system would not work.

What Does VIX - CBOE Volatility Index Mean?
The ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge".
Read more: http://www.investopedia.com/terms/v/vix.asp#ixzz1fPhg9xue

What does this mean to you and me?
The 1% are the majority holders of all stock. They also are the board of directors and executives of the companies. Their wealth is tied up in the stocks and their wealth is based on the stock value. When the price drops the 1% does not sell. That would cause a panic and reduce their wealth even more. As with Enron, the chairman knew the status of the company and sold his stock as he went on TV and announced that the Enron employees 401 was exclusively purchasing Enron stock. Crash. He sold out of a majority amount of his Enron stock. Companies put restrictions on the selling of stocks by major stock holders to keep stocks at false levels of value. To keep the stocks value high with all this selling companies need record profits. They always sell when the restrictions are surpassed.

To increase stock value profits need to increase. The fastest reduction of expenses to increase profit is reduction in labor cost. That is always the first cuts. Moving large plants with heavy labor to 3rd world countries reduces labor by up to 80%.

This reduces the jobs available and increase reduction of pay caused by excessive available labor. It also increases new customers in countries that receive the raise in new jobs. This is the middle class that is now relocated to other countries. This process is now repeated by companies on a regular basis.

Now the stock prices do not affect the actual business or profits. If Apple stock dropped it would still sell its products without interruption.
We would just have a new richest man in the world.
Apple would cut labor cost to raise profits again.

The 1% was betting on the 2008 crash with Hedge funds using Puts. So as we the 99% went into foreclosure they increased in wealth. They caused the crash to get paid.

The corporation projects earnings for the next quarter (or other designated time period). With the objective of exactly meeting that projection.

It is the responsilibity of the CEO to steer the company to make that projection exactly as projected. To much above or two much below is NOT a good thing.

The projection comes in on target, the CEO gets a bonus in the form of more stocks, and the value of the stock rises - it: the board of directors and other investors reap the benefits of the increase in stock values along with a controlled (projected) increase in dividends which is nothing compared to the increase in stock value.
04 NOW you know the rest of the story about who controlls and why they control the corporation and the CEO and give such big bonsus awards to the successful CEO - successful, that is in feeding into the Hedge funds-who own no stock-and themselves who actually own the stock.

THUS a message to all the angry people out there:
If you want to continue to expend your energies towards the CEO - you are merely wasting your time. He can easily be replaced and the same scenerio continues. The CEO in this game of shooting targets or throwing darts, is not even in the outermost ring of how the system works.